• BOQ completes $3.62 billion whole-of-loan equipment finance portfolio sale to Challenger
• Sale represents a key milestone in BOQ's transformation to a simpler, specialist bank
• Proceeds expected to reduce funding and provide return to shareholders

Bank of Queensland Limited (ASX: BOQ) has completed its previously announced whole-of-loan equipment finance portfolio sale to Challenger Limited (ASX: CGF), with $3.62 billion of assets sold. The completion of this transaction represents a key milestone in BOQ's transformation to a simpler, specialist bank, with improved returns. As previously announced, the proceeds of the sale are expected to reduce funding and, subject to regulatory and Board approval, provide a return to shareholders, through an on-market buyback of shares and a fully franked special dividend. The financial implications of the sale include a statutory loss of $31 million recorded in the first half of the year, and an estimated loss of $52 million to be recorded as an expense item in the 2026 financial statements. This comprises a sale premium of $3 million, a reduction in the provision for expected credit losses of $16 million, an allocation of goodwill of $20 million, the impact of interest rate swaps of $41 million which remain economic, transaction costs of $6 million, and $4 million of other items.